BRICS Okay I was wrong! - http://infobrics.org/ \ stacker news ~bitcoin

BRICS Okay I was wrong! - http://infobrics.org/

1854 sats \ 19 comments \ @BloodOfThor 24 Aug 2023 bitcoin

So BRICS has stated from the 1st of January 2024 they will accept new members, Argentina, Egypt, Ethiopia and the United Arab Emirates will join Saudi Arabia and Iran.

So what does this really mean for the US Dollar?

Source - https://www.aljazeera.com/economy/2023/8/24/saudi-arabia-iran-to-join-brics-as-grouping-admits-six-new-members

Also If anyone knows any cool discords or similar platforms discussing Economics/Crypto & potential RTGS systems that'd be helpful.

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146 sats \ 0 replies \ @btcthinker 24 Aug 2023

History shows that when empires become so large that the military expenditures to maintain them begin to outweigh the resources the empire can plunder, the empire begins to collapse and shrink.

61 sats \ 2 replies \ @blocktock 24 Aug 2023

Don't expect BRICS or any widely-used competing political currency to be a success for at least the next 5 years.

The relative outperformance of other widely-held currencies is not typically seen until after a war ends, and a "winner" is decided. That is when the "loser" takes the hit in purchasing powder. Until then countries will do their utmost to support their currencies against one another. We're likely still in that stage.

Here is the pound's purchasing power (as the reserve currency) against the dollar (1939-1945 was WWII):

https://imgprxy.stacker.news/7gSAg9YKpz14ckjGvTUPIC9oOZrJaqaPNg40XZZF3Jw/rs:fit:600:500:0/g:no/aHR0cHM6Ly9pLmliYi5jby93U3NDMnhOL2RvbGxhci1wb3VuZC5qcGc

61 sats \ 1 reply \ @Hypnagog 24 Aug 2023

Its a nice narrative (war ends an empire currency) but its faulty. There were a number of other wars prior to ww2 almost regularly every 30 years, so what made ww2 different? It wasnt a war that ended pounds dominance, it was the relative advantage the us had in manufacturing and access to resources . that's what was built in ww2 that killed the pound. People wanted usd to buy us goods. Us had a relative advantage that gave it the upper hand.

Think of it this way, why would the pound drip because of a war when the uk won? That's not what made it drop.

There may be a war to defend the us, but that's not the reason the us is losing dominance.

1 sat \ 0 replies \ @blocktock 24 Aug 2023

I agree with your analysis. However my point is that the relative outperformance or largest devaluation only happens once a war has concluded and all parties are aligned on who gets to define and how to define the new monetary standard for the next ~30 years.

Speculating that the BRICS alliance is going to eat into the dollar's prominence as early as next year is very far-fetched IMO. Especially when the currency doesn't even exist as of today. Not to mention the fact the vast majority of worldwide debt remains denominated in dollars, thereby retaining demand for it.

18 sats \ 0 replies \ @BloodOfThor OP 24 Aug 2023

See I'm in agreement, but does the USD have 100 years, people always ask when is the USD going to crash or be debased.

Simply It's happening in front of us piece by piece, taking into account the geo political issues.

0 sats \ 3 replies \ @Tjacten 24 Aug 2023

Ecofin platform would be the place to talk about all finance, but its not nostr though. I use to go to other places like Matrix, Duscord, and reddit.

0 sats \ 2 replies \ @BloodOfThor OP 25 Aug 2023

whats Ecofin and matrix like, do you rate them higher than lets say for example twitter and reddit?

0 sats \ 1 reply \ @BloodOfThor OP 25 Aug 2023

Your probably right thou matrix has the decentralised element

0 sats \ 0 replies \ @Tjacten 25 Aug 2023

Yeah Matrix is better when comparing those platforms. Hope to see one much like nostr. I only mentioned Ecofin because the financial community was really big when I last used it.

0 sats \ 0 replies \ @edulopesf 24 Aug 2023

If it works, the demand for US Dollar might fall. This may trigger the fall of the US Dollar.

But, I don't think will work. There are simply too many differences between BRIC participants especially the new wannabes.

0 sats \ 4 replies \ @iguano 24 Aug 2023

So are we saying that a Token created by Argentinians, Brazilians, Egyptians, Ethiopians and Arabs will undermine the power of the dollar?

0 sats \ 3 replies \ @guts 24 Aug 2023

Why not including China and Russia?

1 sat \ 2 replies \ @iguano 24 Aug 2023

China could be the only one who can have the remote chance of change the world mindset about a global currency, but still, even their country neighbour don't trust them.

Russia its another no no.

1 sat \ 1 reply \ @guts 24 Aug 2023

BRICS+ includes China and Russia, I don't see an immediate change in short term but long term will.

0 sats \ 0 replies \ @iguano 24 Aug 2023

They have to prove that they are not going to devalue their currency for several decades.

The Euro had similar hopes long time ago and as we all know, it failed.

0 sats \ 0 replies \ @inverselarp 24 Aug 2023

No idea what it means for dollar but most people in the world that want to live in freedom and work?in fair economy will chose US every second of their life. All of BRICS countries are maybe nice for short and cheap holiday but you want your ass away once you pass the hangover.

0 sats \ 0 replies \ @BloodOfThor OP 24 Aug 2023

Cool people, thanks for the input.

0 sats \ 0 replies \ @Zepasta 24 Aug 2023

Those sanctions are working so well ...

0 sats \ 0 replies \ @pow 24 Aug 2023

There is always a change in power after every century. Looks like US has reached it's maximum.

Even E.U tried to make an impact but most of their union countries defaulted one by one.

I would expect China or other asian countries that might lead another 100 years.